Skip to main content

About this Show

Markets Now

News/Business. Business news. New.

NETWORK

DURATION
02:00:00

RATING

SCANNED IN
San Francisco, CA, USA

SOURCE
Comcast Cable

TUNER
Virtual Ch. 130 (Fox Business)

VIDEO CODEC
mpeg2video

AUDIO CODEC
ac3

PIXEL WIDTH
704

PIXEL HEIGHT
480

TOPIC FREQUENCY

U.s. 18, Us 16, Boeing 11, Chicago 8, Faa 8, Boston 8, Europe 8, United States 6, Fha 6, Lifelock 5, Chrysler 5, Nicole Petallides 5, Schlumberger 4, Cia 4, Tracy 4, Gethelp 4, Ntsb 4, S&p 4, Underarm 4, Washington 4,
Borrow a DVD
of this show
  FOX Business    Markets Now    News/Business.  
   Business news. New.  

    February 7, 2013
    1:00 - 3:00pm EST  

1:00pm
don't wait until you become the next victim. you have so much to protect and nothing to lose when you call lifelock now to get two full months of identity theft protection risk free. that's right, 60 days risk-free. use promo code: gethelp. if you're not completely satisfied, notify lifelock and you won't pay a cent. order now and also get this shredder to keep your documents out of the wrong hands-- a $29 dollar value, free. get protected now. call the number on your screen or go to lifelock.com to try lifelock protection risk free for a full 60 days. use promo code: gethelp. plus get this document shredder free-- but only if you act right now. call the number on your screen now!
1:01pm
melissa: welcome. i am melissa francis. lori: good afternoon. i am lori rothman. talk about boeing coming up. melissa: a winter storm is barreling towards the northeast. grab your ski gear. president obama -- the senate considers the nomination of john brennan as cia chief. lou dobbs will give us his take. melissa: checking your e-mail after work.
1:02pm
should that be considered over time? back to the floor of the new york stock exchange. nicole: what we are seeing right now is the dow jones industrials down about 92 points. at our lowest level we were about 13,852. the truth is a lot of the traders still look at this exceptionally strong dollar. it puts pressure not only on our equities, but also on commodities and materials and that is the environment that we are seeing right now. oil pulling back. as far as the major averages, names like caterpillar, hewlett-packard, as i noted energy, exxon is one of the biggest lakers right now.
1:03pm
we did cross 14,000. that was our fundamental moment will the move to those highs. melissa: strongly rejecting proposals for direct talks with the united states on a host of issues including the nuclear program. "talks will not solve any problems". iran was pushing for rollback on western sanctions in exchange for some key concessions on its nuclear program. they say the nuclear fuel is for energy reactors. the u.s. is concerned that they will produce weapons grade material. let's head to the pits of the
1:04pm
cme and phil flynn. >> very little reaction down here. the very first place you want to look is the ti spread. it has spread out to the largest level of the year. it is possible that part of that could be this story. a lot of people did not hold out a lot of hope for the stocks. the direct talks with the u.s., they thought maybe something may come out of that. at least they were hopeful. the rejection, now that obviously looks like it will be off the table. these talks will not do a whole heck of a lot. this comes at a time where they are tightening sanctions even more on iran. we saw saudia arabia, and take if you cannot get enough supply, we will pump a little bit more.
1:05pm
melissa: that u.s. productivity fell 2% in the fourth quarter to its lowest level in nearly two years. what does the next day to say about our economic recovery? what do you make of that productivity number? that jumped out at me. >> the move in jobless claims is certainly a good move. 350,000 should be consistent with a pickup in employment. over long periods of time, in the short term it is good news. that means that the economy grows and it will produce more job gains then it would in a hard coded to the environment. at this point, it is not unusual to see productivity slowing and,
1:06pm
frankly, it is just what the doctor ordered. melissa: you think these reports put together are a good thing? >> i think they tell us that the pace of employment will call at the very least, hold steady if not accelerate. this is very important. you talked about the strong dollar. this year, as we look at the 2013 economic outlook, it really depends on the domestic economy improving. melissa: does it concern you, i mean, i know it is an improvement, but so little improvement after so long. are you concerned about that? >> it certainly is concerning that we have seen the tepid job games that we have to this point.
1:07pm
i think as the year wears on, we will see the economy picking up steam. the outlook for the economy is constructive. i think we will see this virtuous feedback loop strengthening. melissa: the hazard to all of that is the situation going on with the sequestration and the lack of a budget. do you think that will take a toll on the overall picture? >> things look good. the risk is we could throw a monkey wrench into the system. looking back at you for, the gdp number did not look that great. if the overall economy is struggling overall, that is barely above stall speed for the economy. that type of growth rate is sustained or deteriorating due
1:08pm
to a shutdown or something. that could be the monkey wrench that destabilizes everything. melissa: i am looking at the bottom of the screen and you can see that you read target for gdp. that is not very good. >> that is a little bit misleading. the profile will be so weak in the beginning of the year. once we get beyond the sequestration and that feeling issues, we are looking for the economy to accelerate. 2.2 is misleading because the beginning of the year will be 1.5m it and will be 3%. melissa: thank you so much for coming on. we appreciate your time. lori: a whole host of issues on the president desk these days.
1:09pm
peter barnes joins us now from washington, d.c. with the very latest. peter: the president was just making some remarks at this democratic policy retreat and he was really focusing on the sequester. he thinks that cutting spending "with maybe ask would be bad policy and it is a bad idea." he is still looking for a big deal with republicans. >> i am prepared, eager and anxious to do a big deal, a bid package, that in this governance by crisis where every two weeks
1:10pm
or two months or every six months we are threatening this recovery. >> solve are unhappy with the president for not doing much to prevent the sequester. back to you. lori: many thanks. melissa: will it help sell cars? jeff flock talks with jeep ceo coming up next. lori: providing u.s. airlines and u.s. air. that may be about ready to take off. ♪ all stations come over to mission a for a final go.
1:11pm
1:12pm
this is for real this time. step seven point two one two. rify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers.
1:13pm
♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all onhinkorswim from td ameritrade. ♪
1:14pm
melissa: the chicago on our show is kicking off this week. plenty of new cars expected. jeff: you can talk mike manley into jumping in the back of a jeep wrangler. this is quite a ride. you have been on quite a ride. >> absolutely. jeep has had a phenomenal three years to be quite honest. jeff: i want to take you right to the ad. first you have eminem, they do have clint eastwood and then you have oprah winfrey. will this help you sell cheap stuff? >> for us it was an opportunity to give back.
1:15pm
i think it is a special time when the troops come back all. it is true to the brand. jeff: i want to take you to your goals. last year you had all-time record sales. >> world sales record last year, we would like to get to over 800,000 by 2014. jeff: you have, coming off at the show, unveiling the liberty replacement and you said that they will either be liberty or cherokee. >> that is right. we have very strong name recognition for both. jeff: which of the names is it? >> it is a super opportunity, but i am hoping you to give me again at new york. jeff: i have to ask you, selling jeep around the world, how are
1:16pm
you going to accomplish this? you have taken this farther already. how will you take jeep sales of québec the great thing is everyone knows jeep around the world. we are strengthening our distribution channels. jeff: this is mike's biggest goal. everyone has tried to do this, so jeep's around the world. nobody has been able to do this around here yet. this is quite a ride. you go ahead, you can take us down. wish you were here. melissa: yes. absolutely. very cool. jeff flock, thank you so much. lori: let's have another addition of market now with
1:17pm
nicole petallides on the new york stock exchange. i know you have some retail winners and losers for us. nicole: that is right. these are some of the names. the title they be a little confusing. that is retail winners. the stocks are not necessarily winners today. however, their same-store sale numbers came in and impressed analysts. macy's came in and there sale rose 11% last month. the gap also beat wall street forecasts. they have old navy under their umbrella. you saw the limited which has victoria's secret under airline. on the other hand, names like and taylor and cato came under some pressure.
1:18pm
they talk about the payroll tax. that really affects most americans. we do about your payroll and your paycheck, you realized you had a little less money. down 5.25% for that particular name. melissa: thank you so much. get ready for a mega merger. american airlines and u.s. airways are within a week or two from finalizing a major deal. that is according to the "wall street journal." as a result of the deal, american would emerge from the graph c. fewer airlines they result in higher prices because of less competition. lori: the president's pick for
1:19pm
cia director is in the hot seat. we will learn more about the american drone program. melissa: take a look at how the dollar is faring. the dow is down almost 100%. the dollar is stronger against the euro, but weaker against the pound and again. we will be right back. ♪ it's a new day.
1:20pm
if your a man with low testosterone, you should know that axiron is here. the only underarm treatment for low t. that's right, the one you apply to the underarm. axiron is not for use in women or anyone younger than 18. axiron can transfer to others through direct contact. women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these signs and symptoms to your doctor if they occur. tell your doctor about all medical conditions and medications. do not use if you have prostate or breast cancer. serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle,eet, or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. common side effects include skin redness or irritation where applied,
1:21pm
increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. see your doctor, and for a 30-day free trial, go to axiron.com. it's delicious. so now we've turned her toffee into a business. my goal was to take an idea and make it happen. i'm janet long and i formed my toffee company through legalzoom. never really thought i would make money doing what i love. [ robert ] we created legalzoom to help people start their business and launch their dreams. go to legalzoom.com today and make your business dream a reality. at legalzoom.com we put the law on your side. officewith an online package new colincluding: domain name,y! website builder with five pages and basic email just $49.99! that's up to 76 percent below online providers and only at officemax stores!
1:22pm
1:23pm
>> i have dear fox news minute. lapd are reporting that in the effort to guard a target that was mentioned in an ex- officer's manifesto, several people were shot and wounded in california. there is a massive search on the way for the former cop who is suspected of killing three people including one officer. an alabama coroner says the body of the man that held that 5-year-old boy hostage for a week had multiple gunshot wounds. agents were able to rescue the
1:24pm
child miraculously unharmed. how about this, a rare baseball card can make you a few bucks. $92,000. the 148-year-old card shows a brooklyn atlantic amateur baseball club and was discovered in a yard sale and made. people out the card as an investment for his young son. you never know what you will find. melissa: the president choice for cia, john brennan, is part of congress and the next hour. they will look at the drone program. it is time for lou dobbs now. lou: it ought to be a fascinating hearing unlike some of the others we have seen here
1:25pm
recently. the idea that brennan will be moving forward into the cia director role which he, obviously, could have had in 2008, but concerns about exactly what he is talking about today. the drone program and enhanced interrogation program both are difficult subjects, apparently, for this nominee and the shame is that it would be so. the drone program is one of the most effective antiterrorist possessions that we have. the president, the democrats should be thrilled in the most recent movie "zero dark 30". they make it very clear that based on all of their pre-things that the president was behind it. president obama and our cia.
1:26pm
i have to say, thank you for having grown-ups finally in charge of a movie and the intelligence community itself. now, if only, if only the folks will be as an adult. lori: why don't politicians just kind of accept the fact that all of these things do not happen in a vacuum? everything is situational. you know what i am saying? they want these specific answers from brennan in the documents from the administration lou: here is a man who has been serving his country honorably with great distinction and affect, yet we will have politicians try to make, try to create some sort of clinical leverage out of it.
1:27pm
i think it is terrible that they are doing it. you can judge this man on any kind of basis, but to judge him because he is using the most effective tools at hand to move forward within the national interest, what with these people have him do? what they are saying is they do not want our intelligent committees doing the very best that they can to protect this country. lori: what are your thoughts overall on the senate confirmation hearings? anyway, they are losing a lot of credibility among american people. lou: first of all, i think everyone is losing great credibility. first of all, the republicans are going after a republican. how silly is that.
1:28pm
lori: they call it a which hunt. lou: a which hunt against a republican. what sense does that make? to judge it on the basis that the man has had, he made money in the private sector and he is a decorated veteran of the vietnam war. come on. they should have been able to embed it this man entirely. they, being the administration. it makes the president look foolish. it makes the congress look silly. the republicans and democrats alike. it is why they have a low approval rating, they being the congress. melissa: lou dobbs, thank you so much.
1:29pm
you can see lou dobbs here every day at this time and, of course, at 7:00 p.m. thank you. lori: we have new details here in the investigation to the boeing 787 problems. we will tell you what they are doing to get the dreamliner back in the air. melissa: we will tell you about a new lawsuit that says you should be paid for the work you do once you are also club. details straightahead. ♪
1:30pm
ooerd . ..
1:31pm
1:32pm
1:33pm
lori: well the market is slowly climbing back. the dow is off just 78 points that is hilarious. that is not what she is really laughing at. can't share that with a family audience. let's send it down to nicole to rescue us. nicole petallides. what has got your eye? >> i have something for a family audience and investors alike. want to show you three names. ignore caterpillar. go like this. the other three up there, actually hitting 52-week highs. we had caterpillar up earlier because of their outlook. we're looking at goldman sachs now to the downside. you talk about tyson foods. think about chicken. think of delta air lines and mergers and acquisitions and what is going on in the airline industry. as far as names looking at
1:34pm
them, s&p has $20 price target and buy rating on delta. fitch talked postively about tyson foods. goldman sachs at new 52-week high. that and citigroup would be another name that would go along with it. so we are seeing some names despite the fact we've had volatile trading here over the last week. we are to the downside today but you are seeing some names with green rare rose -- arrows talking those 52-week highs. much like the markets. touching all-time highs and taking a breather and pulling back a bit. back to you. >> nicole, thanks so much. national transportation safety board is sill not not certain what is causing the battery problems on the boeing 787 dreamliners. what did they say? >> they are not sure as you mentioned. they still have no diet for a conclusion. they will issue a report in the next 30 days. it is an interim report. they still don't have any
1:35pm
conclusions as part of that report. so the investigation continues and it is actually growing and surrounds the issues revolving around the certification of the battery. remember this goes all the way back to a battery catching fire in an airplane, japan airlines at logan airport. the investigate surrounds, why did it catch on fire? now it is how did the government certify that process? they're getting different test results now than boeing stated in 2007. now they're reviewing the entire certification process. >> you have have different component parts on aircraft manufactured by different manufacturers. you have got landing gear. you've got tires. you've got avionics. they're not all from the same manufacturer. so you've got different suppliers and different contractors and subcontractors. we need to understand what tests were done and who was certifying those tests. and again how they were verified. >> in other words, this is going to take time. now it's up to the faa to decide when the 787 is
1:36pm
allowed to fly again. we just got off the phone with the faa telling us they're evaluating a proposal by boeing to begin allowing test flights, something boeing put forward. the faa says they're still looking at that still nothing certain when these planes might be back in the air. back to you. melissa: rich edson, thanks so much. lori: so what does all of this mean for boeing shareholders? since the first fire last month in boston shares are down nearly 2%. with have an analyst at bb and b analyst markopolos kets. the first analyst to downgrade boeing after the 787 fire. carter we heard from the ntsb. it says they have a long read ahead on the investigation. not what you want to hear, correct? >> correct. it was a two-part briefing. it talked about the battery fire and sources and causes the second talked about the certification process. rich's assessment i agree with, which was the market initially was excited this
1:37pm
this could be a short circuit would be quick conclusion that would be some manufacturing defect which would imply a quick fix but the bigger story is the all encompassing investigation and the ntsb was very clear that they are looking very closely under the very premise that the certification of the system and that is what has husband most concerned. lori: right. in your latest note on boeing, carter, you suggest investors are looking for a level of confidence from boeing, from the ntsb and i'm just curious where you stand on that in terms of how you're gauging your future opinion on boeing shares? >> well, they, the earnings call went quite well on the earnings front but i felt that management missed an opportunity to at least put some parameters what the possible you'd comes could be. i don't feel that those questions, you know, would in any way, you know, impact the gag order on the investigation. so it really is incumbent upon boeing to give us probability of outcomes. lori: so the stock has held up really since all of these
1:38pm
issues down just about 2% or so in the last month. shares are up 50 cents today. what's outoutlook? >> look, my outlook at bb&t capital markets is one of conservatism. it goes like this. if you ask me to contrive the worst possible scenario for an oem, this would be it. doubling production at the same time you have two investigative bodies looking at not only a fire incident but the entire certification process. against that backdrop, we find it difficult to want to leap into the stock right here. lori: okay. so a hold then? i know the company, if you look at the balance sheet has a fair amount of debt there as well. so stay right here. you wouldn't necessarily sell it though? >> we have underweight rating on the stock. you know, the issue is, that, you know, the timing of this, you're correct, the report is just an interim report in 30 days and we think the probability that this accelerates more to a
1:39pm
six-month scenario where cash flow does get impacted, production may get impacted. for that reason we think there is more downside than upside right here. lori: you know getting back to this question of the certification process "the wall street journal" wrote extensively on the faa back in 2007, giving special conditions for its approval of this particular battery. if the investigation really starts to focus on that angle of this, will it change your outlook? >> well, that is it. i think that's the path we're heading down and the difficult thing about certification it's a very, very slow process. if we change batteries or if we change anything on the current certified civil you really have no idea when it can get recertified but, you know, i would start off at around six months. those are big numbers to start to have big impacts. lori: all right. very good. carter leak, thanks so much for your insight. >> thank you. melissa: so major snow storm is passing through the great lakes threatening to make travel nearly impossible in parts of the
1:40pm
northeast. the forecast is coming up next. lori: and it's more than a case of the winter blues. stress levels for most americans on a downward trend, exempt a particular generation that is. a new report on who is most stressed out next. ♪ . i'm a conservative investor. but that doesn't mean i don't want to make money. i love making money. i try to be smart with my investments. i also try to keep my costs down. what's your plan? ishares. low cost and tax efficient. find out why nine out of ten large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus which includes
1:41pm
investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal.
1:42pm
>> good afternoon, everyone, i'm sandra smith with your fox business brief. it is a bearish day on wall street as traders take cover in traditional safe haven sectors and treasury bonds. off session lows the dow is still holding onto an 80-point loss. meanwhile there is some good news in the housing market as consumer sentiment rose in january. according to fannie mae's national housing survey more people believe now is a good time to sell a home. 41% brief home prices will go up in the next 12 months. according to challenger, gray & christmas the turnover of chief executives dropped 10% from the same time last year the outplacement firm says there were 113 ceo changes last month compared to the 126 in
1:43pm
january 2011. health care products and hospitals saw the heaviest turnover in the last month. that's the latest from the fox business network, giving you the power to prosper
1:44pm
melissa: a potentially historic blizzard is being forecast in the northeast tomorrow. with a rainstorm in the west today it looks like the country is in for a travel nightmare this weekend. just how bad is it going to be? let's head to the weather center and fox's rick reichmuth. i'm supposed to go to florida this weekend. help me out. >> when do you go? melissa: saturday morning, you don't, sorry. melissa: don't do that. a little kid's birthday party. we've got to go. working is out for me. >> i would say go tonight or go sunday. and that is probably going to be your best bet. melissa: oh. >> unnorthly going to be really rough tomorrow and
1:45pm
residual will be ending saturday morning. you will have the pileup you will have to deal with. that is not just for you, melissa. that is anybody traveling in around the northeast the next couple days. these are the two storms. this is the moisture source down here across the south. the cold air, the northern jet stream is up here across the great lakes. these two storms tomorrow afternoon merge off the coast and that will create this big nor'easter, it will be historic for a few people certainly. right now we have blizzard watches anywhere you see the red, part of long island. snowfall totals probably not as extreme on the eastern end of long island but very, very windy. much of connecticut, rhode island and eastern parts of massachusetts dealing with winds at times up to 60, maybe 70 miles an hour. that will push a lot of water into boston harbor. so pretty significant coastal flooding there. this is a look what happens. this is future radar. this is why we're having a hard time forecasting for new york city on that one. it is on the rain-snow line the temperature may be a little bit too warm tomorrow
1:46pm
to accumulate any of the snow during the daytime. tomorrow night that changes. it will cross over to snow. 7:00 p.m. all snow in boston. entire storm is snow in boston. that is why accumulation there will be so great. new york city, at least according to a lot of models we're looking at, probably not getting below freezing until later tomorrow night that is when the snow significantly accumulates. we're off by 30, 40 miles one direction or the another. there could be snow longer period. that would increase snowfall totals. take a look what at least for now we're forecasting for snowfall totals. a bull's-eye two to three feet west of boston. worcester hills, nash issue waa, new hampshire. a big swath of this getting a foot and a half of snow and 6 to 12 here in new york city. if it gets colder that number could be higher. i don't think it will happen but have a lot of uncertainty for at least in new york city for this time. not uncertain about boston but new york city still a
1:47pm
little uncertain here. melissa: we need global warming here in new york, i think. >> you would like that. melissa: not for me in particular. not to be selfish or anything. not all about me but a 5-year-old's birthday party. happy birthday jack. thanks so much. lori: you can't make it? weather. melissa: poor jack. lori: i'm so mean. i would be thrilled. we're going sking, come on. it is a quarter of. as we do every 15 minutes let's check markets with nicole on the floor of the new york stock exchange. >> i'm a party gill. i'm ready to go sking. i'm ready to go to jack's birthday party. sign me up for all of it. let's talk about names going into the closing bell. hasbro is the one name with an up arrow. get back to that in a moment. coinstar, linkedin, open table all coming under pressure on a day where you're seeing pressure across the board, however, we really have a pared our losses. at our lowest point we were
1:48pm
13,852. so we significantly improved up off the lows. remember yesterday we talked about monopoly and the new token game pieces. bye-bye, iron, on the monopoly board. hello little kitty cat. we'll see the five names we'll follow between now and the closing bell. back to you. lori: thanks, nicole. keep it here for full earnings coverage including an interview with the ceo athenahealth on "after the bell" with liz claman and david asman at 4:00 p.m. eastern. according to a new survey young adults are facing stress levels higher than the national average. the survey by the american psychological association. millenials, those people ages 18 to 33, reported being told by a health care provider they have a depression or anxiety disorder more than any other age group. 52% of the millenials said stress kept them awake at night past month. sources of stress are work, money, relationships, family and the could on my.
1:49pm
no kiddings. -- economy. melissa: yeah. lori: you have to be 25 to feel the stress. melissa: makes perfect stress. lori: exactly. it is a tough time of your life, trying to sort out family, job, where you want to go with things. a lot of decision. >> there you go. lori: trying to be empathetic. you have to have a thick skin these days, right? melissa: i think so. that is the only way to get through. lori: putting apple's cash hoard to work. david einhorn has a plan as the stock struggles next. melissa: we'll tell you about a new lawsuit that claims you should be paid for all the e-mails you're responding to after work. ♪ . (announcer) scottrade knows ou clients trade
1:50pm
and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody. i trade like me. i'm with scottrade. voted "best investment services company."
1:51pm
1:52pm
1:53pm
lori: location, location, location. they say it's the most important thing when it comes to housing. tomorrow fox business is bringing the hottest real estate markets to you. tune in for the full coverage of the real estate story. during our show at 1:00 p.m. eastern we'll look at the chicago market. zillow calls it the top buyers market in the country. we'll find out why. tune in all day at fbn tomorrow. melissa: not only there. they all think chicago is best market. very cool. david einhorn taking aim at apple's cash. shibani joshi has the story. >> a public brouhaha surrounding apple. something we haven't seen in a very long time.
1:54pm
david einhorn is activist hedge fund manager and apple investor making a public appeal to shareholders via press release ahead of the company's shareholder meeting asking for them to keep the option open of issuing preferred shares. there is an agenda item at this year's shareholder meeting, to stop and no longer issue preferred shares. he does not want that to happen. the reason he wants to prevent that because he wants to unlock shareholder value. keep in mind the price of apmedical is down the lax six months over 30%. he says there is lot of cash on the books he wants to get into his own pocket. he issued the following statement. we understand many shareholders share our frustration with apple's capital allocation policies. they have $145 per share of cash on the balance sheet. as a shareholder this is your money. he is trying to get his hands on it. melissa: what is the
1:55pm
likelihood he will get what he wants? >> we seen the proxy fights go anywhere but in apple's favor. what he prosed to apple which was shot down was the possibly of a perpetual preferred. on paper no cost to investors. but for the 4% return there is no voting rights associated with it. that is his ultimate goal. whether or not he will be able to reach that big sort of determining factor is the vote on the 27 this month. we'll watch that and follow that vest -- closely. melissa: always interesting to follow. shibani joshi thank you very much. >> is checking your e-mail after work count as overtime? a lawsuit winding its way through chicago federal court claims. a chicago police officer claims the city owes him and fellow sisters work done on required department issued blackberries. more importantly claims the plaintiff's attorney is the impact this case could have on employees everywhere.
1:56pm
see quickly i think you don't check the blackberry when you're not at work. melissa: i don't know. gives you a lot of he is flexibility. we have little kids and pick them up from school or do what you need to do run over in the middle. day and recital. you're still in contact. people can reach you. have you done that. do you need this? lori: how do you monitor how much time you're on the blackberry outside the office? melissa: you can't. you can't really charge the time for it. lori: gps technology maybe there is some way to track it remotely or something anyway. >> there is so much to talk about on it issue. that's why we'll take it up on "money" tonight. don't want to miss it. 5:00 p.m. eastern here on fox business. we'll break it down. it is our question of the day. should you get paid overtime for working on your blackberry after-hours? lori: put it down, turn it off. melissa: really? good to know. i hope everyone on the second floor is is arening to that. lori just turns it off. lori: on a sunday, you know. melissa: okay. lori: once in a while.
1:57pm
quarterly. chrysler revving up against the competition with the new ad push and new financing partner. chrysler brands ceo joins jeff flock live from the chicago auto show next. tracy byrnes and ashley webster take you through the next hour of fox business. don't miss it. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade. all on thinkorswim. all stations come over to mithis is for real this time. step seven point two one two. rify and lock. command is locked.
1:58pm
five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers. >> announcer: you never know when, but thieves can steal your identity and turn your life upside down. >> hi. >> hi. you know, i can save you 15% today if you open up a charge card account with us. >> you just read my mind. >> announcer: just one little piece of information and they can open bogus accounts, stealing your credit, your money and ruining your reputation. that's why you need lifelock to relentlessly protect what matters most... [beeping...] helping stop crooks before your identity is attacked. and now you can have the most comprehensive identity theft protection available today... lifelock ultimate. so for protection you just can't get anywhere else, get lifelock ultimate.
1:59pm
>> i didn't know how serious identity theft was until i lost my credit and eventually i lost my home. >> announcer: credit monitoring is not enough, because it tells you after the fact, sometimes as much as 30 days later. with lifelock, as soon as our network spots a threat to your identity, you'll get a proactive risk alert, protecting you before you become a victim. >> identity theft was a huge, huge problem for me and it's gone away because of lifelock. >> announcer: while no one can stop all identity theft, if criminals do steal your information, lifelock will help fix it, with our $1 million service guarantee. don't wait until you become the next victim. you have so much to protect and nothing to lose when you call lifelock now to get two full months of identity theft protection risk free. that's right, 60 days risk-free. use promo code: gethelp. if you're not completely satisfied, notify lifelock and you won't pay a cent. order now and also get this shredder to keep your documents out of the wrong hands-- a $29 dollar value, free.
2:00pm
get protected now. call the number on your screen or go to lifelock.com to try lifelock protection risk free for a full 60 days. use promo code: gethelp. plus get this document shredder free-- but only if you act right now. call the number on your screen now! is. tracy: good afternoon, i'm tracy byrnes. ashley: i'm ashley webster. stocks taking another dive on new worries about the u.s. economy and europe. the dow is losing down 56 points, under the 14,000 mark. it is off session lows but still as we say below that psychologically important 14,000. so is europe's long-simmer crisis about to boil over again? former world bank president bob zoellick is here to talk about it. tracy: urgent reforms needed at the federal housing authority. the government agency that insures 30 million homes. we have former fannie mae
2:01pm
credit officer ed pinto. he will tell us why he says the fha may be closer than ever to a bailout. ashley: and federal safety officials questioning how boeing's dreamliner ever won approval to carry passengers in the first place. we'll have the latest new details on the government's investigation into a rash of security problems. tracy: that is the scarier by the day. ashley: yeah. tracy: but it is top of the hour. as ashley said, down 55 on the dow. we have to go down to nicole petallides on floor of the new york stock exchange. we're off the lows but nobody wants to red on the screen, right? >> it depends, right? if you anticipated maybe we're at 14,000 when volatility was high and we would run up and i actually heard some people taking some profits. i actually heard some people shorting and expecting we might pull back a little bit, they're probably pretty happy today. most of the people, to your point, tracy were long this market. 401(k)s, iras, 529 plans.
2:02pm
they want it to just go up, up and away. they are a little disappointed about a pullback. we're down about 44 points on the dow jones industrials. each time i look up we're improving. we have a very strong dollar. at our lowest point we were down 135 points. we have improved significantly. retailers, drugs, banks all lower. want to quickly look at the vix, the fear index. still there. it was above the 14 level. now you could see it at 1395. up about 4%. there is volatility there, there is a little bit of nervousness in this market, particularly over in europe as we, watching the euro to the downside. back to you. tracy: thanks, nicole, see you in 15 minutes. >> we have a bearish warning that will help protect your portfolio hopefully. a closely tracked indicator on wall street has turned sharply negative. liz macdonald is here with more on emac's bottom line. an important indicator to watch. >> that's right. we been tracking insider
2:03pm
selling monitor from vickers insider report put out by argus research. we've been tracking it since last september. what we're seeing now and we're already out there reporting this, we're seeing it turn bearish. insiders are turning bearish. sales to purchases by insiders has, tipped up to nine to one. so that is on the nyse. so what we're seeing is, we haven't seen these levels since around the time that s&p was about to downgrade the united states. this is dating back to june, july, 2011. we haven't seen these negative bearish signals for a while. the, the basically the eight-week moving average on this if you want to call it that is five to one. we haven't seen that since early 2012. when people report this story you want to know what companies insiders are dumping. ashley: yeah. >> take a look here. if you look at google, global payments, proctor & gamble are on the list. these stocks, insiders are selling, three or more insiders are selling and they're not buying during
2:04pm
this intensive selling. at least two insiders cut their holdings by half. i can see tracy ready to jump in here. these are prearranged selling plans a lot of time. employee stock options and restricted stock. ashley: yeah. >> maybe raising cash or tax. >> that is what i was going to say because of tax scares at the end of the year everyone woos trying to get it under the gun before the change. >> that is important question. we saw it tick up before september. i saw it stick up earlier in the fall. the magnitude, whatever the reason, what is being said is two things the magnitude of the selling can not be discounted right now. vickers is also saying listen to this. insiders are showing remarkable ability to identify the peaks and the downdrafts before they happen in the markets. so pay attention to this very important signal. ashley: interesting. >> interesting stuff. this is developing story. we'll be staying on top of this. we've been watching this since last september. ashley: very good. emac thank you. >> sure. ashley: appreciate it. tracy: all right.
2:05pm
well stocks edging lower after two is today of gains on really disappointing earnings and new worries about europe. what is the best way to keep your money safe? we'll bring in margie patel, senior portfolio manager with wells capital management. we hit dow 14,000 for the first time in five years. we have a pullback. did we go up too fast and will we see 13,5 before we see 1400 again? >> i think we might. we had a terrific run-up from the late fall all through january. we have kind of a news lull for most individual companies. most companies have reported. there is not any new good news. we might see a pullback if a stock is up 20%, which many good companies are the last two months it takes away your enthusiasm. so why not wait a little bit and maybe the market will lower short term. ashley: margie, after this relentless bull market you still believe that stocks are reasonably priced.
2:06pm
if i haven't jumped in yet should i wait for much anticipated pullback or should i jump in now? >> i don't think there is a need to wait because i don't think the pullback is going to be that significant. maybe five or 8%, something like that for the overall market. no disasterous 20% correction. and you think what i'm starting to see more and more is stocks move not just with macro trends, some pronouncement out of washington but rather individual results. i think it will be more important to look at individual company's growth prospects in the future to decide what to buy or sell. but i would definitely get in. tracy: some of the sectors you're suggesting are industrials and energy. if we talk industrials we're basically talking about an economy that is improving because somebody is going out there to build something. >> yes. that's right. and really reflects what looks like a little bit of acceleration in growth in china and some of the other developing markets. they all have a very strong need for capital goods. we're really the biggest
2:07pm
supplier in the world. so i think industrials might be kind of a sleeper sector that people are very nervous about, slow economic growth but responding to these trends in developing markets and in energy. we may see them have very good returns this year. ashley: what in particular, you say health care, the large pharmaceutical companies, they're trying to come up with the next blockbuster drug. is there any company in particular that you like, margie? >> i think the big pharma companies, lilly, merck, bristol-myers. all the big pharma companies have a patent cliffs. but they seem to be on a new round of drug success in finding drugs. they have enormous room to cut costs and improve cash flow even in declining revenues. i think they all look like pretty good high quality holdings here. tracy: let's talk about the energy sector more. what in particular are you playing? pipelines, natural gas, supposed boom here in the united states? where are you putting your
2:08pm
money? >> yes. all of the above. companies that have good acreage in the shale gas plays where they can increase at a very profitable level particularly their liquids. companies part of the infrastructure needed to take the gas and liquids from where they're found to where they can be used on the gulf coast, the east coast. companies that are part of that. i think they will all benefit over the next three years. it is really tremendous boon for the u.s. economy and for the energy companies in particular. ashley: margie, seems investors are still more concerned about preserving assets than increasing the return they can get out of there. do you think that is the right strategy? what is the best play for them in a macro situation? >> i think people are still concerned about preserving some of their money, and so i think that people who are looking for treasury rates to go up are going to be disappointed because that's one of the forces keeping treasury rates low. also i think we'll gradually see over the course of this year more money be transferred from, more money
2:09pm
market type investments rather than bond funds over into the equities to take advantage of better yield and better returns that we're seeing. >> just to follow up on that quickly, so you think money will stay in bond? everyone talks about this great rotation but as far as the, you know, big are bond funds, people keep their money there for a while? >> yes, that's right because people want a little bit more yield than they would get in treasurys and money markets. that's what bond funds give them. really bonds have been the friend to investors for over 30 years. people aren't going to abandon bonds overnight just because we have a little push upin treasury rates in the last six weeks. i think they will stick with bonds. maybe reduce money market holdings. tracy: that is true. a lot of people out there are still very shell-shocked. margie patel with wells capital management. thank you. >> thanks. ashley: let's talk about the auto industry. chrysler coming off successful super bowl ads with new plans to launch a financing un. chrysler brands president and ceo talks about it next
2:10pm
with our jeff flock live from the chicago auto show. tracy: plus is a massive winter storm about to cripple the northeast just months after superstorm sandy? say it isn't sew. the latest forecast is coming up. first as we do every day this time of day let's look how oil is trading. it is down a little bit. $95.94 a barrel. we'll be right back. dentures are very different to real teeth.
2:11pm
they're about 10 times softer and may have surface pores where bacteria can multiply. polident kills 99.99% of odor causing bacteria and helps dissolve stains. that's why i recommend polident. [ male announc ] cleaner, fresher, brighter every day.
2:12pm
2:13pm
tracy: the nation's largest and longest running auto show kicks off today in chicago. our very own jeff flock is there because he always gets the best assignments with the president and ceo of chrysler. hey, jeff. >> what i didn't report to you he is also the president, as many people at chrysler are they have multiple hats. he used to have three. only has two. president and ceo of chrysler and the other
2:14pm
brand. >> correct. >> you're like everyone at chrysler working very hard? >> we try to do our best keeping ourselves busy. >> what i'm seeing here various chrysler 300 vehicles. that is legendary vehicle, a concept car. >> in 1963 the famous chrysler turbine. we made a modern iteration of it, of the different wheels that our turbine kind of inspired as you can see. the color is a very famous color for the turbine of 1963 which is a also a copper color. we modernize it with the flat paint. >> i like what i see there. you have the 300. you have the 200 and the vans. more product coming? >> yes. there are, there are more products to becoming for sure. we have a new 200 the it00 has been very successful for us. -- 200. there is a new 200 coming very soon, not this year. there is a, also a new people mover, minivan replacement for town and country. >> i have got to ask about that as we walk over.
2:15pm
i want to go over to the town and country if i can. obviously chrysler invented the minivan. town and country in tandem with the dodge caravan. sergio marchionne any said i think we have only room for one of these at one point. can you give me any inside what you're thinking in terms of the chrysler town and country versus is the caravan? >> we will continue to have a people mover for chrysler and for dodge one way or another. whether one would become a minivan, the other one would be another type of form of people mover we'll continue to be in this business and in moving families. we're, it is our bread and butter and we're going to continue to own it. >> before we get away i got to talk to you about the ads. you were one of the brains behind the imported from detroit campaign. we still see it from all over here. you have now had three super bowls of incredible advertising. latest of which was the oprah commercial for jeep. >> yes. >> what more can you do on that one?
2:16pm
do those ads sell cars? >> when we had the first advertisement we did with eminem in 2011 now, the sales on the 200 shows very clearly what happened right after that. we went from selling in one month, we sell, we sold as much as in one year in the previous cars. >> gotcha. very good to talk with you. native of lebanon. perhaps you feel kinship with detroit, once great city, torn a bit by various and sundry things. >> yeah. >> but so he is, one of the heads of the chrysler family of brands. we're focusing on that today. next time we will do ram, the trucks and their new ram truck, it is not a van. it actually a commercial van. we'll have that one for you coming up. ashley: very cool. tracy: jeff flock, thank you. ashley: so i guess the super bowl ads pay off. tracy: apparently. ashley: it is a quarter past. time to check the markets as we always do.
2:17pm
nicole petallides on the floor of the stocks exchange. nicole, activist investors making headlines today. >> that's right. these activist investors always make headlines. they really push hard for these companies and make their opinions known. they always have a lot of money involved in this bun. let's look at two names here on the move. the first is apple. don't forget apple is a $700 company back in september. today you have david einhorn of green light capital really making it known and actually doing a filing, a u.s. filing with the sec saying that is unhappy with how apple is using its cash. that it needs to do more with their cash and obviously moving forward now with something to prevent apple, to prevent apple from issuing preferred stock and filed this lawsuit in federal court. apple right now is at 457.70. there is herbalife, another name that has been really pulled around because of something pershing square's bill ackman says. he talks about the pyramid theory.
2:18pm
they fought that adamantly. it is up 1.7%. he is at it again, another set of questions about their business model. back to you. ashley: he is not letting go, is he? nicole, thanks so much. we'll be back to nicole in 15 minutes. tracy: it was one month ago today, believe the or not a fire broke out on the dream liner in boston. is the government any closer to know what caused this blaze? we'll tell you next. ashley: we'll look how the dollar is moving right now against the euro the euro dropping more, down to 1.3 against the dollar. the pound is getting some gains against it 1.57. we'll be right back.
2:19pm
officemax is celebrating our new collaboration with go daddy! with an online package including: domain name, website builder with five pages and basic email just $49.99! that's up to 76 percent below online providers and only at officemax stores!
2:20pm
i have obligations. cute tobligations, but obligations.g.
2:21pm
i need to rethink the core of my portfolio. what i really need is sleep. introducing the ishares core, building blocks for the heart of your portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal.
2:22pm
>> 20 minutes past the hour right now. hi, everybody, i'm jamie colby. this is your fox news minute. that manhunt is continuing for a former los angeles police officer suspected of fatal shootings of three people including a police officer. and now police believe the gunman was former l.a.p.d. officer christopher dorner, who posted an online manifesto where he vows to kill police and others. dorner remains at large at this hour. also, iranian tv is broadcasting footage that it says was extracted from an advanced cia spy drone they
2:23pm
claim they captured in 2011. iran long saying that it was able to reverse engineer that drone, that was seized after it reportedly entered iranian airspace pace. caroline kennedy, a leading contender to be the next u.s. ambassador to canada. according to a senior democratic official telling fox news, kennedy has been a strong supporter of president obama and of course the late daughter of the late president kennedy and jacqueline kennedy onassis. those are the top headlines at this hour. back to tracy. tracy: jamie colby, thank you very much. >> you're welcome. tracy: now the latest on boeing. a one-time very slight of the grounded dreamliner has just landed in everett, washington. it took off from texas earlier today. meanwhile federal safety firms are not sure what caused a fire on a dreamliner in boston one month ago today. we have rich edson in washington with the latest on this. are we any closer, rich? >> good afternoon, tracy. that's right there was the one-time flight from texas
2:24pm
to washington state. the faa allowed it with just the operational staff. this wasn't a flight that had passengers on it though boeing is pushing to have test flights with the faa the faa says it is reviewing that proposal. here at the national transportation safety board they're reviewing battery issues. remember this all dates back a month ago when that battery caught fire on a japanese airline flight that was grounded at logan airport. so this is an examination of the entire review process. they're looking at how this battery was certified and allowed to be put into planes. also an examination of every stage of the battery from the construction to its use. >> not yet identified. what the cause of the short-circuit is. we are looking at the design of the bat i are. we're looking at the manufacturing president ses. and we are also looking at the cell charging and that involves the charging that is coming from outside of the battery. how each individual cell is
2:25pm
charged. how that is managed and how it is evaluated. >> so the next part of this, the next 30 days the ntsb says they will issue an interim report. it won't be a final report, as far as a decision is concerned to allow planes back up in the air, that is up to the faa no indication when that may come. back to you. tracy: rich edson, thank you very much. i don't know. we have to check on boeing shares right now. they are actually up about 1% today. not doing a whole heck of a lot on the news or lack of news i should say. ashley: let's change gears. are fracking companies poised for a takeoff? rebounding from last year's losses companies like schlumberger, halliburton, baker hughes, making some major strides this year but of course will it last? sandra smith with the story in today's trade. sandra. >> this caught our attention because it takes a lot of guts to come out in a market or sector where a lot of analysts have been talking very bearish lately. schlumberger you mentioned
2:26pm
ashley. look at one-year chart. lows hit for schlumberger last summer. as oil prices were coming down, there was overabundance supply of oil services. these guys go out and explore for oil. they produce the oil itself. prices are down it is hard time for them. there was overabundant of supply and competition in the market. well now, look at this year-to-date chart, completely different story. schlumberger is now up 1% so far this year. some competitors, halliburton up 16%. baker hughes up 10%. bmo capital markets is among many analysts coming out bullish on the oil services stocks, the big ones. they particularly like schlumberger saying this stock will head to $85 a share. it is well-diversified internationally as well as halliburton. baker hughes they like but they don't have as much of the international exposure so there is a little bit of a concern there. tracy and ashley, oil prices
2:27pm
are up 5% this year and that could be big boost for the stocks, back to you guys. ashley: interesting, sandra, thanks very much. tracy: we've been talking about these defense cuts. they are weeks away. they could hit tons of american servicemembers in their wallet in particular. gerri willis is on the story next. ashley: plus former world bank president bob zoellick tells us what the united states and europe must do to stack kel the global economic crisis. first let's look at some of today's winners and losers. we'll be right back. what's next?
2:28pm
he's going to apply testosterone to his underarm. axiron, the only underarm treatment for low t, can restore testosterone levels back to normal in most men.
2:29pm
axiron is not for use in women or anyone younger than 18. axiron can transfer to others through direct contact. women, especially those who are or who may become pregnant, and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these signs and symptoms to your doctor if they occur. tell your doctor about all medical conditions and medications. do not use if you have prostate or breast cancer. serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet, or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. see your doctor, and for a 30-day free trial, go to axiron.com. for their annual football trip. that's double miles you can actually use. tragically, their ddy got sacked by blackouts.
2:30pm
but it's our tradition! that's roughing the card holder. but with the capital one venture card you get double miles you can actually use. [ cheering ] any flight, anytime. the scoreboard doesn't lie. what's in your wallet? hut! i have me on my fantasy team. ♪
2:31pm
tracy: it is half past the hour. testiculate get the dow 30, pretty darn right. below which we have been talking about. allred. unfortunately a big loser. as ted danson and nyse-listed area to stocks climbing off their lows, but still really read. >> reporter: we are in the red, and as we are getting ready to go on, keep looking around. what you looking at? what number do you need to taken to make your next statement? >> always looking at the s&p 500. but also looking at the hearing next. the one of the things that has been a problem, then these levels, until we get above 20 adults think you will see the dramatic selling. >> reporter: above 20? people making a big deal that was about 14. >> exactly, but it will have to get up there before we see real
2:32pm
price action. that is what we have right now. and that is where you see the s&p range. it dug in its heels pretty substantially at 1501, and that is back up to 1507. >> reporter: and understand real in a tight range. however, we are seeing 100-. swings. we have had multiple hundred-. days unless several days. >> back-and-forth. >> reporter: a buyer or seller? >> i am actually bearish at this point. around 1495. >> reporter: market in journals breaking down. a somewhat bearish. back to you. tracy: and we thought the guy who was getting his coffee. we did an excellent think he was looking for a big number. that's just us. ashley: they both.
2:33pm
tracy: maybe both. ashley: john brennan is facing questioning a capitol hill during his confirmation hearing. meanwhile, "usa today" is reporting the pentagon as outlined a series of major spending cuts that will kick in march 1st unless the president and congress reach a spending bill to avoid sequestration. many worry is to have a devastating effect of military. our very own willis joins us now. >> at least 1 trillion. and the cells of what this would look like. perez's cat. a third reduction on aircraft maintenance, elimination of airshows. cuts in funding for army intelligence surveillance aircraft and equipment. that is something you expect. just buy more than half the number of flying hours for planes on carriers in the mideast.
2:34pm
is really starting to get that power protected, who is out there on our behalf, how many folks are really in harm's way watching out for our interest. tracy: we talked about how technology jobs and the military will be cut. that means we're not coming up with new ideas to protect ourselves from the bad guys. >> the debate over the sequestered, as you know, which has been ongoing. the big deal with republicans, republicans him as they said yesterday, the split, the not sure what to do the arms services committee chairman, jen amelya proposal to make cuts. there will not be as dramatic as sequestration. tim% cat. not as dramatic as a we're talking about.
2:35pm
ashley: cobbled town. it will have a big sequestration of nothing is done. that's a huge impact. tracy: and every talking about this, but we're also talking about u.s. air and the american because there are lots of the tax for individuals, consumers. a frequent flier to watch our show because there will be talking about the impact. tracy: late tips on the whole ipads thing last night. >> i have never been so angry. tracy: i presume that is on the web summer. ashley: there you go. of course tonight at 6:00 p.m. eastern time right here on fox business. tracy: the northeast is bracing for a major storm that could leave more than a foot of snow in some areas. fox news meteorologist tracking the snow from the weather center. it can't be that bad.
2:36pm
>> of of more than 3 feet of snow. a few people will probably get over threepeat -- 3 feet of snow. it will be right here. i have to tell you, last winter there was really no smell. bad news for all the businesses comiskey resorts, people realize that and the business. this year we're already wrote way at a deficit. we should be at 14 inches so far. seven and half. all about to change. new york city in north toward boston. these of the two storms that will come together and form. right now there raise side, the moisture is all done here. "their is with that set up across parts of the northern at the perfect timing because the classic nor'easter across all the northeast. birth -- blizzard watches all
2:37pm
across parts of connecticut, ryland to eastern end of rhode island. what the storm watches and warnings across interior sections. have to tell you, new york city is the big bull's-eye where we will see what it is. right on the line, so we cannot say exactly what will be. the biggest totals will be lent or there will certainly see over 2 feet in a few spots. ashley: move just a few miles only or the other. tracy: but there are people who are going to be happy about this bill. our stage manager in particular. skis or snowboards. we're great. they cute. ashley: securing the united states economic future. former world bank president says the u.s. needs a new strategy, and guess what, he has won. he will tell us what is the most critical next. tracy: as we do every day this today, is to collect your tennant 30 year treasurys. them two basis points.
2:38pm
your 30-year done as well. one basis point. it will be right back. tracy: in [ male announcer ] at his current pace, bob will retire when he's 153, which would be fine if bob were a vampire. but he's not. ♪ he's an architect with two kids and a mortgage. luckily, he found someone who gave him a fresh perspective on hisortfolio. and with some planning and effort, hopefully bob can retire at a more appropriate age. it's not rocket science. it's just common sense. from td ameritrade.
2:39pm
it's just common sense. we asked total strangers to watch it for us. thank you so much. i appreciate it. i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money? if your bank takes more money than a stranger, you need an ally. ally bank. your money needs an ally. ♪ >> reporter: em shibani joshi with your fox business brief. according to the "wall street journal," lens are wins armstrong is being sued for
2:40pm
$12 million. the lawsuit demands that he return the prize money for winning the tour de france in 2002, 2003, in 2004. accusing armstrong of fraud and civil conspiracy. and yet who is turning to googol in its search for more advertising revenue. the website will use mcdougal massive on-line network to show ads related to the content that is being read already distributes those sorts of of that comes into thousands of websites. that is the latest from the fox business network, giving you the power to prosper.
2:41pm
tracy: breaking news. oil closing down $0.79 at $95.803 per barrel, loss of nearly 1%.
2:42pm
ashley: every time it gets close to 100 it just -- tracy: i know. twitter looking to ramp up competition by making one of its biggest acquisitions yet. dennis kneele is here with the details. >> reporter: a new rival for viewers' attention. talking about tv on twitter. so it is that twitter itself has just done $100 million acquisitions. analyzing what lives are saying about tv programs on twitter. twitter could sell those insights, even better, that data could help twitter itself sell more ads. networks once looked at on line as a threat that could never lose from networks and their commercials. now they're realizing this is a boon for their business. in fact a much studies show that attackers or multi screeners go people watch tv with the second, smaller screen at their side in the baltimore tv, not less, and
2:43pm
they're more engaged. a good thing for advertisers. the ranks of these are huge. five years ago we had 20 million. the explosion of the iphone and ipad has fuelled a multi screen boom. a survey in october of your supply and to what the presidential debates found a startling 65%. you will watch. almost one-quarter plan to post to facebook about it. you can see the upside with super bowl blackout when the action stops the ad tweet started. oreo saying, you can still dug in the dark. and sending out a tweet offering the dark stadium, much touted headlights. so this deal could make those kinds of ties with free online and tv even closer. ashley: interesting that there would take what people say and sell it to the studios or the tv networks.
2:44pm
hoping that your's will themselves. and as people were not paid for doing that. tracy: and we are staggers no. >> you are a stack. tracy: would you like to be to? thank you very much. it is that time of day. we head back to nicole petallides on the floor of the exchange. downtown 64 points improving. >> reporter: down over 130. we are seeing an improvement. and did not know if there was more you read ask about the retailer's. same-store sales numbers. outpacing analysts' estimates. very good britney in new merchandise. the consumer spending soars. some names like costco and target, macy's, limited brands,
2:45pm
victoria's secret under their belt, some of the names that have done well. on the other hand and tailored. another name that come under pressure. let's take a look. has been anticipated. superstar and sandy has been blamed as some companies. it will be discounted aggressively. tracy: their will have another storm to blame 77 estimate they are. we appreciate that. europe, new developments bringing the crisis back into the spotlight. ecb president's comments on the euro sparking a sell-off in that currency. global stock. this is leaders' opening today's
2:46pm
the budget talks. good luck on that. to better to talk about all of this that a former world bank president bob zelnick with the peterson institute for international economics joining us by phone. live me to say, you took part recently in a comfort in munich where it was stated that the eurozone is already falling behind the u.s. and asia in terms of economic growth and competitiveness. i guess my question is, can the eurozone survive in its present form and does it have the willpower to do what it needs to do to a make the changes? >> i believe the eurozone will survive, and if anything, it situation is somewhat stabilized . the value of the euro is going up somewhat which led to some concern by president france and others that it might make the europeans less competitive.
2:47pm
i don't think that he was trying to signal anything in particular , but it know it -- it shows the sippets it -- sensitivity to these issues where people are concerned about competitive devaluation. ashley: how important is it for the u.s. and the you to get a trade deal than. why is that? >> of thing they have been very active in the trade area. the free trader reston by the bush and ministration. you're exactly right. there have been hints about negotiating something with europe. the president has not committed. maybe that will come up and said the union. so far on the european side there's a lot of questions are whether the united states is serious. people would like it because it is a good way to make structural
2:48pm
reforms without having to spend money or monetary policies. it does take a commitment by the president. ashley: you talk about new international economic strategy for the u.s. with a number of points that you make. one of those committees said the u.s. needs to break the logjam on opening markets, working on adding these free trade agreements. how difficult has that been? >> frankly, i don't think the united states and the president obama has made it into much of a priority. inducting that will be one of the question is for the second term. there is a lot of interest in opening up service sectors were the u.s. is very competitive. that would be part of the structural reforms in europe. a lot of emerging market countries to including china that this will help with productivity. the administration has talked about it transpacific initiative, but it has been vague about what it would do to open up the u.s. markets. senate's other is a lot of
2:49pm
discussion about fiscal and monetary policies, trade and structural reforms to be the basis for growth, but it does require a political impetus from the top. ashley: something that we have not seen. you're right. thank you. thank you for joining yes. >> my pleasure. tracy: all right. but, former fannie mae official warns the federal housing authority to be moving closer to a bailout. ashley: first must take a look at some of today's winners and losers. adelle of 62 points. someone is on the nasdaq, and that they are. sigalert. we'll be right back.
2:50pm
2:51pm
2:52pm
2:53pm
♪ tracy: we are just weeks away from finding of whether the federal housing administration will need a taxpayer bailout. our next guest just testified on capitol hill saying it is time for the troubled agency to change its ways. joining is now, former chief credit officer at fannie mae and no resident scholar at the american enterprise institute. this must be like deja vu all over again because back in 2009, if i'm not mistaken, you testified before a subcommittee and said there was a $54 billion hole. here we are again. no one is listening. >> no one is listening, and the whole today fha basically admitted that it is a $54 billion hole, it is like i indicated.
2:54pm
the problem is that if fha were a private mortgage insurer there is not a state insurance regulator in the country that would allow it to continue operating. this is really a threat to us taxpayers and because there insets weakened conditions and are allowed to continue, if their is a recession anytime in the next year for years there will be catastrophic losses that will make toehold now looks small. tracy: you're saying it could face a $16 billion cash or fox. what's interesting, it does not seem like there that changing their ways all that much. 40 percent of those that are out there still have sub prime attributes. what are we doing? >> welcome fha continues its ways of abusive lending that really harms working-class families and neighborhoods. add the study in december that said that there were over 6,000 zip codes where the average foreclosure rate is projected to be 50%.
2:55pm
those are loans made in 2009 to does intend. the and they are is just started, the national association of realtors has just started an ad campaign talking about a great work of fha, and they talk about safe landing. the only problem is that since 2008 the lending fha has done by fha zone numbers of going to lead to half a million for closers. in the last 37 years fha lending has led to three and a quarter million foreclosures. these are astounding numbers. tracy: it relates to people who don't deserve it. in order to fix this problem there kind of going to raise rates thinking maybe that will solve the problem. as of april 1st year of higher mortgage insurance premiums, higher down payments for loans over 65. that is silly not the answer. >> that is clearly not the answer. i laid out in my testimony yesterday precisely how they should be done. first a unit to reduce some of the risk.
2:56pm
the value. the down payment. scores and other things. debt ratios. secondly, you need to change some of the process used. i pointed to the veterans administration as an example of best practices. practices that fha does that do and if they didn't believe would reduce their foreclosure rates significantly. tracy: according to your notes at least around 28 percent of people with scores under 600 projected they're going to foreclose or at least 30 percent of them will foreclose, so clearly there's a correlation. this seems so obvious. >> and of course the consumer financial protection bureau has a truly ignored with a willingness to pay or credit scores of the factor in defining a prime loan. we really have a bizarre situation developing where they have defined the problem as having nothing to do with the willingness of a borrower to pay or the down payment put up by
2:57pm
the borrower. tracy: totally mind-boggling in the hope someone is listening because of the less taxpayers will foot this bill. of freight you will be back to talk about this more. and we are covering the housing market across the country tomorrow. following the trends in some of housing saw this market and have you can make some money on the sectors that are recovering. be sure to tune into fox business all day tomorrow for their realistic story. submissive. ashley: this claman will be taking a still last hour of trading. this ceo of auto nation talks about the big gain in car and trucks sales. straight ahead in a fox business exclusive. the countdown to a closing bell is next. ♪
2:58pm
>> announcer: you never know when, but thieves can steal your identity and turn your life upside down. >> hi. >> hi. you know, i can save you 15% today if you open up a charge card account with us. >> you just read my mind. >> announcer: just one little
2:59pm
piece of information and they can open bogus accounts, stealing your credit, your money and ruining your reputation. that's why you need lifelock to relentlessly protect what matters most... [beeping...] helping stop crooks before your identity is attacked. and now you can have the most comprehensive identity theft protection available today... lifelock ultimate. so for protection you just can't get anywhere else, get lifelock ultimate. >> i didn't know how serious identity theft was until i lost my credit and eventually i lost my home. >> announcer: credit monitoring is not enough, because it tells you after the fact, sometimes as much as 30 days later. with lifelock, as soon as our network spots a threat to your identity, you'll get a proactive risk alert, protecting you before you become a victim. >> identity theft was a huge, huge problem for me and it's gone away because of lifelock. >> announcer: while no one can stop all identity theft, if criminals do steal